Margaret Hodge, PAC chairman, said: “Investment in infrastructure is crucial for stimulating growth.” But she said the Treasury had not properly prioritised its 200 key projects – including roads, rail, airports, and ports – and had deterred investment by policy indecision.
“Investors will be reluctant to invest… until government policy is clear and consistent. Uncertainty can deter or delay investment and [add to] costs,” the report states.
Yes, that\’s the problem with having the government run infrastructure projects. They\’ll be run like all government projects. Badly and late. This is simply inherent in using politics and bureaucracy to do something.
It also rather kyboshes the idea that we should use infrastructure spending to boost aggregate demand. The actual boost to demand is going to come some years after the demand needed boosting……